Question: An ETFs reported tracking error is typically measured as the: A. standard deviation of the difference in daily returns between an ETF and its benchmark.

An ETF’s reported tracking error is typically measured as the:

A. standard deviation of the difference in daily returns between an ETF and its benchmark.

B. difference in annual return between an ETF and its benchmark over the past 12 months.

C. annualized standard deviation of the difference in daily returns between an ETF and its benchmark.

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